Union leaders and members celebrate the defeat of a measure to overturn the hotel and airport $30 per hour minimum wage at Los Angeles City Hall in downtown, Sept. 9, 2025 in Los Angeles, CA. Gary Coronado/Los Angeles Times via Getty Images
(NEW YORK) — Nearly 20 U.S. states are set to raise their minimum wage in 2026, boosting pay for millions of workers spanning from Arizona to New Jersey.
A mix of Republican- and Democrat-controlled states will raise their wage floors on Jan. 1 in keeping with inflation-adjusted increases or as part of scheduled hikes that take effect at the beginning of each calendar year.
The pay increases will affect about 8.3 million workers, who will gain a combined $5 billion over the course of 2026, according to the left-leaning Economic Policy Institute, or EPI.
Beginning next year, the number of workers living in a state that guarantees a $15 minimum wage will exceed the number living in a state that offers the federal wage floor of $7.25 per hour, the EPI found.
After the wave of wage hikes, Washington will become the state with the highest minimum wage, offering workers $17.13 per hour.
Workers in New York will enjoy the second-highest wage floor, as the state implements a minimum hourly wage of $17 for workers in New York City, Long Island and Westchester. Outside those areas, workers in New York will receive at least $16 per hour.
Overall, the 19 states set to raise their minimum wage on Thursday include: Arizona, California, Colorado, Connecticut, Hawaii, Maine, Michigan, Minnesota, Missouri, Montana, Nebraska, New Jersey, New York, Ohio, Rhode Island, South Dakota, Vermont, Virginia and Washington.
The nation’s highest wage floors will take effect in some of the nearly 50 cities and other localities that will impose minimum pay hikes.
Twenty-nine localities in California will see pay hikes, including a $20.25 an hour wage floor that will take effect in West Hollywood. Eight localities in Washington will increase their minimum wage, among them the country’s highest wage floor: $21.65 an hour in Tukwila.
The latest round of pay increases, however, will not affect 20 states concentrated in the South that lack a minimum wage or offer a minimum wage that does not exceed the federal minimum.
The last federal minimum wage hike took place in 2009, when Congress raised the pay floor to its current level. Since then, the federal minimum wage has lost more than 30% of its value due to inflation, EPI found.
President Donald Trump attends the signing ceremony of the Peace Charter for Gaza as part of the 56th World Economic Forum in Davos, Switzerland on January 22, 2026. (Harun Ozalp/Anadolu via Getty Images)
(NEW YORK) — Mortgage rates whipsawed in recent weeks as markets reacted to a flurry of policies from the Trump administration.
It began with a major milestone. Mortgage rates earlier this month fell below 6% for the first time in nearly three years, according to a data released by Mortgage News Daily.
“The progress stems directly from President Trump’s aggressive agenda to restore the American Dream of homeownership,” the White House touted in a statement on Jan. 12. The Trump administration cited its announcement days earlier, calling on government-sponsored mortgage lenders to purchase $200 billion in mortgage-backed securities.
Within little more than a week, however, mortgage rates had climbed to 6.21%, responding to rattled bond markets and erasing the previous reduction. The uptick came as Trump issued a tariff threat to European allies over his demands to acquire Greenland at the time. When Trump backed off of that levy soon afterward, mortgage rates fell but remained above previous lows, Mortgage News Daily data showed.
The volatility in mortgage rates underscored the risks posed by recent trade tensions, which threaten to push up Treasury yields and, in turn, drive mortgage rates higher, some analysts told ABC News.
Still, they added, mortgage rates will likely face downward pressure this year from anticipated interest-rate cuts at the Federal Reserve, and Trump may take further steps of his own to reduce borrowing costs.
“President Trump is certainly not sitting back and doing nothing,” Susan Wachter, a professor of real estate at University of Pennsylvania’s Wharton School of Business, told ABC News.
“Some of it is big things on the international front, which are potentially destabilizing. And there’s an attempt to do anything and everything for the affordability of housing,” Wachter added.
To be sure, average 30-year mortgage rates have dropped from 7.08% to 6.17% since Trump took office, according to Mortgage News Daily. That drop-off owes in part to a post-pandemic cooldown of inflation, which allowed the Federal Reserve to begin lowering interst rates.
In a social media post earlier this month, Trump said lower mortgage rates would “make the cost of owning a home more affordable. It is one of my many steps in restoring Affordability.”
Mortgage rates closely track the yield on a 10-year Treasury bond. Since bonds pay a given investor a fixed amount each year, the specter of inflation risks higher prices that would eat away at those annual payouts. In turn, bonds often become less attractive in response to economic turmoil. When demand falls, bond yields rise.
U.S. Treasury yields jumped last week in the aftermath of Trump’s tariff threat over Greenland, which appeared to presage a possible trade war with several European allies.
The 10-year Treasury yield climbed as high as 4.3% in the aftermath of Trump’s threat, before dropping steadily down to 4.21% as Trump withdrew the levy and backed negotiations over Greenland, MarketWatch data showed.
As tensions rose in response to Trump’s tariff threat, some major U.S. bondholders in Europe appeared poised to sell. A Danish pension fund, AkademikerPension, said last Tuesday it would unload U.S. treasuries by the end of the month. It remains unclear whether other European bondholders will follow suit, especially after Trump’s reversal on tariffs.
If a substantial share of U.S. bondholders were to sell off their assets, it would slash demand and push up bond yields, some analysts said.
Since 30-year mortgage rates and other key interest rates track the yield on 10-year treasury bonds, a selloff of treasuries could bring about higher monthly payments for home loans, Raymond Robertson, a professor of trade, economics and public policy at Texas A&M University, told ABC News.
“It’s a pretty big concern,” Robertson said.
Marc Norman, associate dean at the New York University School of Professional Studies and Schack Institute of Real Estate, said bondholders are evaluating the reliability of U.S. government debt.
“Basically, it’s a bet on the U.S. government,” Norman told ABC News. “If that becomes unstable and people lose trust, it could have a big effect.”
Despite the uptick in mortgage rates in recent weeks, borrowing costs for homebuyers remain markedly lower than where they stood a year ago.
Analysts attributed the drop to a series of interest rate cuts at the Fed, as well as Trump’s order calling on Fannie Mae and Freddie Mac to buy hundreds of billions of dollars in mortgage-backed securities. After the order, Bill Pulte, the head of the Federal Housing Finance Agency, instructed Fannie Mae and Freddie Mac to up their bond investments in an effort to put downward pressure on mortgage rates, the Associated Press reported last week.
By ordering a federal agency to buy up some mortgage-backed securities, the Trump administration helped increased demand for the underlying loans, which pushed bond yields lower, Wachter said.
“This mortgage bond proposal is not a big move but it makes a difference,” Wachter added. Wachter said she expects mortgage rates to fall further over the course of this year, though she acknowledged ongoing risk: “Investors don’t like uncertainty.”
Still, Wachter said, “If you’re looking to buy a home, today is as good a day as any.”
If homebuyers move forward with a purchase but later find that mortgage rates have continued to fall, they can opt to refinance their homes. “The old saying is, ‘You marry the home and you date the mortgage,'” Wachter said.
A display of one kilogram gold bars at Conclude Zrt bullion dealer arranged in Budapest, Hungary, on Thursday, Jan. 22, 2026. Gold closed in on $5,000 an ounce, with geopolitical risks and renewed threats to the Federal Reserve’s independence supporting a record-breaking rally. (Photographer: Akos Stiller/Bloomberg via Getty Images)
Gold soared to a new record high on Monday, topping $5,000 per ounce for the first time ever as investors rushed toward the safe-haven asset amid geopolitical unrest.
The latest uptick continued a blazing-hot stretch for gold. Over the past year, the price has climbed 83%, far outpacing a 14% jump in the S&P 500 during that period. In early trading on Monday, the price of gold stood at $5,077 per ounce.
Silver prices also climbed on Monday, jumping about 8% in the early hours of trading. The price of silver stood at $110 an ounce as of Monday morning.
Heightened geopolitical and economic uncertainty have boosted demand for gold and silver, which typically display a degree of independence from movements in stock prices, some analysts previously told ABC News. Volatility in bond markets and a devaluation of the U.S. dollar, meanwhile, have unsettled alternative assets typically viewed as safe-haven investments.
The labor market has slowed in recent months, while inflation has hovered nearly a percentage point higher than the Federal Reserve’s target rate of 2%.
Meanwhile, geopolitical conflict looms amid negotiations over Greenland, U.S.-backed leadership in Venezuela and the ongoing war between Russia and Ukraine.
Over the weekend, President Donald Trump threatened 100% tariffs against Canada if the country pursues a trade deal with China. In response, Canadian Prime Minister Mark Carney said the country has no such plans. Under the terms of a free trade agreement with Mexico and the United States, Canada cannot seek trade agreements with nonmarket economies unless it provides notification ahead of time, Carney said.
Precious metals are widely viewed as a hedge against geopolitical unrest because the millennia-old stores of value are perceived as investments that could outlive calamity.
The flight to gold in moments of market turbulence draws on decades of evidence, according to an analysis co-authored in 2025 by Campbell Harvey, a professor at Duke’s Fuqua School of Business who studies commodity prices. The price of gold moved higher during eight of the last 11 major stock market selloffs stretching back to the late 1980s, researchers found.
However, gold and silver prices carry volatility of their own, especially when buyers enter the market at a high point, risking losses instead of providing a security blanket.
U.S. President Donald Trump listens during a ceremony for the presentation of the Mexican Border Defense Medal in the Oval Office of the White House on December 15, 2025, in Washington, DC. (Photo by Anna Moneymaker/Getty Images)
(WASHINGTON) — President Donald Trump this week issued an attention-grabbing proposal cracking down on Wall Street in an effort to lower home prices and ease affordability woes.
In a social media post, Trump said he would move to ban large institutional investors from “buying more single-family homes” and he urged Congress to codify the policy into law. Trump accused industry behemoths of buying up properties and shutting average Americans out of the housing market.
“People live in homes, not corporations,” Trump said in the post on Wednesday.
Several analysts who spoke to ABC News are skeptical that the proposal would meaningfully reduce home prices nationwide.
Institutional investors own a small fraction of single-family homes and many of those properties are occupied by renters, they said, meaning the ban would do little to address the supply shortage at the root of the affordability crisis.
“In the scheme of things, we’re talking about such a small number of homes,” Marc Norman, associate dean at the New York University School of Professional Studies and Schack Institute of Real Estate, told ABC News.
The median price of an existing home in November stood at $409,200, the National Association of Realtors, or NAR, said last month. Prices have surged 24% over the past five years, according to NAR data.
The average rate on a 30-year fixed mortgage is 6.16%, hovering near its lowest level in 15 months, Freddie Mac data showed. But mortgage rates remain well above sub-3% levels recorded as recently as 2021.
Trump aims to address sky-high prices by shutting institutional investors out of the market for single-family homes, which in theory could alleviate the supply-demand crunch and put downward pressure on prices.
“I am immediately taking steps to ban large institutional investors from buying more single-family homes, and I will be calling on Congress to codify it,” Trump said in a social media post.
Trump did not detail the steps he planned on taking to move forward with the ban. The White House did not immediately respond to ABC News’ request for comment.
On Wednesday, Sen. Bernie Moreno, R-Ohio, said in a post on X he would introduce legislation meant to codify the proposal.
Congress has previously put forward bills aimed at limiting the role of institutional investors in the market for single-family homes. In 2023, Democratic members of the House and Senate introduced a bill that would have imposed an excise tax on hedge funds that own a large number of single-family residences.
Shares of some major industry players fell in the immediate aftermath of Trump’s announcement. Blackstone, Invitation Homes and American Homes for Rent saw their stock prices fall between 4% and 6% on Wednesday.
The National Rental Home Council, or NRHC, a trade group working on behalf of the single-family rental home industry, issued a statement commending “the administration’s focus on ensuring Americans have access to a diverse mix of housing options.”
“We look forward to engaging with the White House and other policymakers in this important discussion,” the NRHC said.
The snag, these analysts said, is that institutional investors do not hold a big slice of the market.
Institutional investors own about 450,000 homes, which amounts to roughly 3% of the single-family market, the U.S. Government Accountability Office, or GAO, found in a study last year that analyzed data from 2022.
“The big question here is: Are large-scale institutional investors crowding out prospective homebuyers?” Jake Krimmel, senior economist at realtor.com, told ABC News Live. “The answer is ‘no.’”
Institutional ownership is concentrated in some regions, particularly in the Sun Belt, according to the GAO.
Institutions own 21% of homes in Jacksonville, Florida, and 18% of homes in Charlotte, North Carolina, the GAO found. In Atlanta, institutions own 1 out of 4 homes.
Analysts who spoke to ABC News disagreed about whether the ban on institutional ownership could lower prices in those highly concentrated markets.
Some said the elimination of a key source of demand could push down prices, while others cautioned the move would likely have little effect in those places, since an injection of new supply has already helped ease price pressures in many of those areas.
“In some select markets, this will have some bite,” Stijn Van Nieuwerburgh, a professor of real estate at Columbia University Business School, told ABC News. “Overall, it’s not such a big deal.”
